Bitwise Partners with Maple Finance to Launch Bitcoin-Backed Lending in DeFi

Bitwise, a prominent crypto asset manager and ETF provider, has stepped into the world of decentralized finance (DeFi) through a new partnership with Maple Finance, a specialist in on-chain credit. Announced Thursday, this collaboration introduces Bitwise’s first allocation into DeFi, offering a bitcoin-backed lending product to accredited U.S. investors.

The partnership taps into Maple’s innovative lending platform, where borrowers can use bitcoin as collateral to secure loans—a financial option unavailable in traditional markets. While the exact size of Bitwise’s investment remains undisclosed, Maple Finance CEO Sid Powell called it a “significant milestone” for institutional adoption of blockchain-based credit solutions. These solutions, known as on-chain credit, operate directly on blockchain networks, providing transparency and efficiency.

This move reflects a broader shift in finance. As interest rates drop and yields from conventional investments like tokenized Treasury Bills lose appeal, DeFi platforms are gaining traction with their competitive returns. Bitwise, managing over $12 billion in client assets across ETFs, private funds, and staking services, sees a future where asset management increasingly shifts to blockchain technology. “Bitwise believes in the transparency and unique opportunities on-chain products offer,” Powell said in an interview.

Maple’s bitcoin-backed lending stands out as a fresh alternative. “It’s a product you won’t find in traditional finance,” Powell explained. “We’ve packaged it to meet the needs of institutional asset managers.” The collaboration wasn’t rushed—Bitwise spent 12 months conducting rigorous due diligence, involving its operations, legal, compliance, risk, and tax teams to ensure a solid foundation for the venture.

For Bitwise, this marks a bold expansion beyond its well-known crypto ETFs into the fast-evolving DeFi space. As traditional and decentralized finance continue to converge, this partnership could signal more institutional interest in blockchain-based lending, blending established expertise with cutting-edge innovation.